First Financial Bancorp Reports Fourth Quarter 2015 Financial Results

Full Year Net Income Increases 15.5%

-- Net Income of $19.8 million (4Q) and $75.1 million (Full Year)

-- Earnings per Share of $0.32 (4Q) and $1.21 (Full Year)

-- Return on Average Assets of 0.99% (4Q) and 1.00% (Full Year)

-- Return on Average Tangible Common Equity of 12.98% (4Q) and 12.66% (Full Year)

-- Net Interest Margin of 3.69% (4Q) and 3.66% (Full Year)

Jan 21, 2016, 16:10 ET from First Financial Bancorp

CINCINNATI, Jan. 21, 2016 /PRNewswire/ -- First Financial Bancorp (Nasdaq: FFBC) ("First Financial" or the "Company") announced financial results for the fourth quarter and full year 2015.  For the three months ended December 31, 2015, the Company reported net income of $19.8 million, or $0.32 per diluted common share, compared to net income of $18.7 million, or $0.30 per diluted common share, in the third quarter of 2015 and $18.6 million, or $0.30 per diluted common share, in the fourth quarter of 2014.  For the twelve months ended December 31, 2015, the Company reported net income of $75.1 million, or $1.21 per diluted common share, compared to net income of $65.0 million, or $1.09 per diluted common share, in 2014.

Fourth quarter results included approximately $1.0 million of pre-tax, non-operating expenses which were primarily related to severance benefits accrued during the period.  Excluding these items, net income was $20.5 million, or $0.33 per diluted common share, return on average assets was 1.02% and return on average tangible common equity was 13.40%.

Full year results included approximately $5.0 million of pre-tax, non-operating expenses, which were primarily related to the severance expense noted above, expenses related to the Oak Street acquisition and adjustments to reserves for litigation related items.  Excluding these items, net income for the twelve months ended December 31, 2015 was $78.3 million, or $1.27 per diluted common share, return on average assets was 1.04% and return on average tangible common equity was 13.20%.

Claude Davis, Chief Executive Officer, commented, "2015 was an exciting year for First Financial.  During the year, we celebrated the first anniversary of our expansion into the Columbus, Ohio market, announced and closed the acquisition of Oak Street, executed a $120 million subordinated debt offering and marked our 100th consecutive quarter of profitability.   In addition, we recently unveiled a fresh and exciting new website that enhances product and service delivery to our clients through a more modern online experience.   I am very pleased with our progress toward building a company that can consistently produce top-quartile results."

"Although net interest margin has been constrained by the prolonged low interest rate environment, we believe we are well positioned to take advantage of rising rates and continue to be excited about the growth opportunities throughout our footprint.  Organic loan growth was strong again during the fourth quarter, Oak Street is performing as expected and our ability to successfully grow low-cost core deposits continues to provide competitive advantage as we compete for new business."

"As we look forward to another successful year in 2016, our focus remains centered on effectively and efficiently serving the financial needs of our commercial, small business, consumer and wealth management clients."

NET INTEREST INCOME AND NET INTEREST MARGIN

Net interest income for the fourth quarter was $66.1 million as compared to $63.2 million for the third quarter 2015 and $61.1 million for the fourth quarter 2014.  Compared to the linked quarter, total interest income increased $4.6 million, or 6.6%, while total interest expense increased $1.6 million, or 29.6%.  Net interest margin was 3.69%, on a fully tax equivalent basis, for the fourth quarter compared to 3.67% for the third quarter 2015 and 3.72% for the fourth quarter 2014.

Interest income earned on loans increased $3.8 million compared to the prior quarter, as average loan balances increased $212.3 million during the period.  The effective yield earned on the loan portfolio increased by 10 bps, to 4.62%, compared to the third quarter.  This increase was primarily related to the full-quarter impact of the Oak Street acquisition which closed during the third quarter.

Interest income earned on investment securities increased $0.7 million compared to the prior quarter with average balances increasing $86.1 million.  The effective yield earned on the investment portfolio increased 5 bps to 2.44% as the Company continued to reinvest cash flows into predominately fixed-rate instruments during the quarter.

Interest expense increased by $1.6 million, compared to the prior quarter, due primarily to a full quarter's impact of the $120 million subordinated debt issued during the third quarter as well as a $16.7 million increase in average borrowed funds and a $229.2 million increase in average interest-bearing deposits.  Additionally, and as previously reported, accelerated amortization of the fair-value mark on acquired, long-term FHLB debt, which was prepaid during the third quarter, reduced interest expense by $0.5 million during that period.

The effective cost of borrowed funds increased by 68 bps to 103 bps, primarily related to the full-quarter impact of the subordinated debt, while the cost of interest-bearing deposits was unchanged at 42 bps when compared to the third quarter.

NON-INTEREST INCOME

The Company's non-interest income was $15.8 million for the fourth quarter of 2015 compared to $20.4 million for the third quarter of 2015 and $16.9 million for the fourth quarter of 2014.  The $4.5 million decrease versus the linked quarter was primarily related to a $3.0 million decrease in accelerated discount on covered / formerly covered loans, a $0.7 million decrease in fee income related to the Company's client derivative program, a $0.5 million decrease in income distributions from limited partnerships, a $0.4 million decrease in gain on sale of mortgage loans, and a $0.4 million decrease in gain on sale of investment securities, partially offset by a $0.8 million increase in FDIC indemnification income.

NON-INTEREST EXPENSE

The Company's non-interest expense was $51.3 million for the fourth quarter of 2015 compared to $53.0 million for the third quarter of 2015 and $49.7 million for the fourth quarter of 2014.  The $1.7 million decrease over the linked quarter was primarily related to $4.0 million of previously disclosed third quarter expenses not expected to recur, partially offset by a $0.8 million increase in severance, a $0.6 million increase in health care related costs, a $0.5 million increase in losses on OREO and a $0.4 million increase in performance incentives.

BALANCE SHEET & CAPITAL

Total assets were $8.1 billion, total loans were $5.4 billion and investment securities were $2.0 billion as of December 31, 2015.  Total assets increased by $266.9 million, or 13.4% annualized, from the prior quarter and by $929.6 million, or 12.9%, over the prior year.   Total loans increased by $172.7 million, or 13.1% annualized, from the prior quarter and by $611.5 million, or 12.8%, over the prior year.  Investment securities increased by $91.5 million, or 19.3% annualized, from the prior quarter and increased by $209.5 million, or 11.9%, over the prior year.

Total deposits were $6.2 billion as of December 31, 2015, an increase of $98.2 million, or 6.4% annualized, compared to the prior quarter and $523.9 million, or 9.3%, higher than a year ago.  Borrowed funds were $1.1 billion as of December 31, 2015, compared to $883.0 million as of September 30, 2015 and $709.6 million as of December 31, 2014.

During the quarter, the Company repurchased 91,032 of its shares at a weighted average price of $18.85 and has now repurchased 1,490,867 of the 5,000,000 shares authorized in 2012.  As of December 31, 2015, the Company had total shareholders' equity of $809.4 million, a decrease of $3.6 million, or 1.8% annualized, over the prior quarter and an increase of $25.3 million, or 3.2%, over the prior year.  The linked quarter decline in total shareholders' equity was primarily related to the impact to Other Comprehensive Income from the year-end valuation of the Company's pension plan.

The Company's regulatory capital ratios remain strong and, as of December 31, 2015, were as follows:  leverage ratio of 8.33%, total capital ratio of 13.04%, tier 1 capital ratio of 10.29% and tangible common equity ratio of 7.53%.  The Company's tangible book value per share was $9.69 as of December 31, 2015.

ASSET QUALITY

Fourth quarter provision expense was $1.9 million and the total allowance for loan and lease losses as of December 31, 2015 was $53.4 million.  The allowance as a percentage of period-end loans was 0.99% at the end of the fourth quarter which represents a 3 bps decline from 1.02% at the end of the third quarter.  The balance of the Company's total allowance and loan marks, net of the indemnification asset, was 1.11% of total loans and leases as of December 31, 2015 which represents a 6 bps decline from 1.17% as of September 30, 2015.  This change is largely attributable to the strong organic loan growth during the fourth quarter as well as the decline in nonaccrual loans and other asset quality improvements during the period.

For the fourth quarter, net charge-offs totaled $1.8 million, a decrease of $0.4 million, or 17.9% compared to the linked quarter, and were 0.14% of average loans on an annualized basis.  For the full year 2015, net charge-offs were $9.1 million or 0.18% of average loans.  Nonaccrual loans decreased $7.7 million, or 21.6%, to $28.0 million as of December 31, 2015.  Total classified assets increased $3.7 million, or 2.9% to $132.4 million as of December 31, 2015, as payoffs and other resolution activities during the period were offset by the downgrade of a single performing commercial relationship during the fourth quarter on which First Financial expects to receive all contractual principal and interest.

Teleconference / Webcast Information

First Financial's executive management will host a conference call to discuss the Company's financial and operating results on Friday, January 22, 2016 at 8:30 a.m. Eastern Time.  Members of the public who would like to listen to the conference call should dial (877) 506-6873 (U.S. toll free), (855) 669-9657 (Canada toll free) or +1 (412) 380-2003 (International) (no passcode required).  The number should be dialed five to ten minutes prior to the start of the conference call.  The conference call will also be accessible as an audio webcast via the Investor Relations section of the Company's website at www.bankatfirst.com.  A replay of the conference call will be available beginning one hour after the completion of the live call at (877) 344-7529 (U.S. toll free), (855) 669-9658 (Canada toll free) and +1 (412) 317-0088 (International); conference number 10079287.  The webcast will be archived on the Investor Relations section of the Company's website for 12 months.

Press Release and Additional Information on Website

This press release as well as supplemental information and any non-GAAP reconciliations related to this release is available to the public through the Investor Relations section of First Financial's website at www.bankatfirst.com.

About First Financial Bancorp

First Financial Bancorp is a Cincinnati, Ohio based bank holding company.  As of December 31, 2015, the Company had $8.1 billion in assets, $5.4 billion in loans, $6.2 billion in deposits and $809.4 million in shareholders' equity.  The Company's subsidiary, First Financial Bank, N.A., founded in 1863, provides banking and financial services products through its four lines of business: commercial, consumer, wealth management and mortgage.  The commercial, consumer and mortgage units provide traditional banking services to business and retail clients.  First Financial Wealth Management provides wealth planning, portfolio management, trust and estate, brokerage and retirement plan services and had approximately $2.3 billion in assets under management as of December 31, 2015.  The Company's strategic operating markets are located in Ohio, Indiana and Kentucky where it operates 106 banking centers.  Additional information about the Company, including its products, services and banking locations is available at www.bankatfirst.com.

Forward-Looking Statement

Certain statements contained in this release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act.  Examples of forward-looking statements include, but are not limited to, projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure and other financial items, statements of plans and objectives of First Financial or its management or board of directors and statements of future economic performances and statements of assumptions underlying such statements.  Words such as ''believes,'' ''anticipates,'' "likely," "expected," ''intends,'' and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.  Management's analysis contains forward-looking statements that are provided to assist in the understanding of anticipated future financial performance.  However, such performance involves risks and uncertainties that may cause actual results to differ materially.  These factors include, but are not limited to: economic, market, liquidity, credit, interest rate, operational and technological risks associated with the Company's business; the effect of and changes in policies and laws or regulatory agencies (notably the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act); management's ability to effectively execute its business plan; mergers and acquisitions, including costs or difficulties related to the integration of acquired companies; the Company's ability to comply with the terms of loss sharing agreements with the FDIC; the effect of changes in accounting policies and practices; and the costs and effects of litigation and of unexpected or adverse outcomes in such litigation.  Please refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as well as its other filings with the SEC, for a more detailed discussion of these risks, uncertainties and other factors that could cause actual results to differ from those discussed in the forward-looking statements.  Such forward-looking statements are meaningful only on the date when such statements are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such a statement is made to reflect the occurrence of unanticipated events.

FIRST FINANCIAL BANCORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended,

Twelve months ended,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Dec. 31,

2015

2015

2015

2015

2014

2015

2014

RESULTS OF OPERATIONS

Net income

$

19,820

$

18,673

$

18,949

$

17,621

$

18,599

$

75,063

$

65,000

Net earnings per share - basic

$

0.33

$

0.31

$

0.31

$

0.29

$

0.31

$

1.23

$

1.11

Net earnings per share - diluted

$

0.32

$

0.30

$

0.31

$

0.29

$

0.30

$

1.21

$

1.09

Dividends declared per share

$

0.16

$

0.16

$

0.16

$

0.16

$

0.16

$

0.64

$

0.61

KEY FINANCIAL RATIOS

Return on average assets

0.99

%

0.97

%

1.05

%

0.99

%

1.02

%

1.00

%

0.96

%

Return on average shareholders' equity

9.62

%

9.12

%

9.49

%

9.06

%

9.46

%

9.33

%

8.94

%

Return on average tangible shareholders' equity

12.98

%

12.33

%

11.60

%

11.12

%

11.63

%

12.66

%

11.18

%

Net interest margin

3.63

%

3.61

%

3.56

%

3.61

%

3.67

%

3.60

%

3.71

%

Net interest margin (fully tax equivalent) (1)

3.69

%

3.67

%

3.62

%

3.67

%

3.72

%

3.66

%

3.76

%

Ending shareholders' equity as a percent of ending assets

9.93

%

10.32

%

10.87

%

10.98

%

10.86

%

9.93

%

10.86

%

Ending tangible shareholders' equity as a percent of:

Ending tangible assets

7.53

%

7.84

%

9.08

%

9.16

%

9.02

%

7.53

%

9.02

%

Risk-weighted assets

9.47

%

9.90

%

11.63

%

11.64

%

12.02

%

9.47

%

12.02

%

Average shareholders' equity as a percent of average assets

10.29

%

10.67

%

11.05

%

10.95

%

10.77

%

10.73

%

10.75

%

Average tangible shareholders' equity as a percent of

    average tangible assets

7.83

%

8.12

%

9.23

%

9.11

%

8.94

%

8.13

%

8.79

%

Book value per share

$

13.13

$

13.17

$

13.00

$

12.90

$

12.76

$

13.13

$

12.76

Tangible book value per share

$

9.69

$

9.74

$

10.65

$

10.54

$

10.38

$

9.69

$

10.38

Common equity tier 1 ratio (2)

10.28

%

10.51

%

12.34

%

12.29

%

12.69

%

10.28

%

12.69

%

Tier 1 ratio (2)

10.29

%

10.52

%

12.35

%

12.29

%

12.69

%

10.29

%

12.69

%

Total capital ratio (2)

13.04

%

13.37

%

13.31

%

13.27

%

13.71

%

13.04

%

13.71

%

Leverage ratio (2)

8.33

%

8.58

%

9.77

%

9.67

%

9.44

%

8.33

%

9.44

%

AVERAGE BALANCE SHEET ITEMS

Loans (3)

$

5,248,465

$

5,032,708

$

4,793,471

$

4,770,671

$

4,758,374

$

4,962,834

$

4,290,953

FDIC indemnification asset

18,437

19,848

20,744

22,112

24,172

20,274

32,436

Investment securities

1,934,173

1,848,083

1,782,785

1,762,622

1,811,941

1,832,430

1,824,107

Interest-bearing deposits with other banks

18,920

37,468

19,960

21,255

22,617

24,430

16,507

  Total earning assets

$

7,219,995

$

6,938,107

$

6,616,960

$

6,576,660

$

6,617,104

$

6,839,968

$

6,164,003

Total assets

$

7,950,278

$

7,611,389

$

7,243,886

$

7,201,313

$

7,241,869

$

7,504,069

$

6,760,959

Noninterest-bearing deposits

$

1,402,283

$

1,344,049

$

1,325,485

$

1,286,067

$

1,290,754

$

1,339,802

$

1,169,851

Interest-bearing deposits

4,845,056

4,615,886

4,446,248

4,361,525

4,372,529

4,568,637

3,987,323

  Total deposits

$

6,247,339

$

5,959,935

$

5,771,733

$

5,647,592

$

5,663,283

$

5,908,439

$

5,157,174

Borrowings

$

763,408

$

746,706

$

587,225

$

691,012

$

733,726

$

697,422

$

804,584

Shareholders' equity

$

817,756

$

812,396

$

800,598

$

788,511

$

780,131

$

804,916

$

727,015

CREDIT QUALITY RATIOS

Allowance to ending loans

0.99

%

1.02

%

1.09

%

1.11

%

1.11

%

0.99

%

1.11

%

Allowance to nonaccrual loans

190.73

%

149.33

%

133.28

%

107.98

%

109.06

%

190.73

%

109.06

%

Allowance to nonperforming loans

93.89

%

95.34

%

88.49

%

82.18

%

82.08

%

93.89

%

82.08

%

Nonperforming loans to total loans

1.06

%

1.07

%

1.23

%

1.36

%

1.35

%

1.06

%

1.35

%

Nonperforming assets to ending loans, plus OREO

1.30

%

1.36

%

1.56

%

1.79

%

1.81

%

1.30

%

1.81

%

Nonperforming assets to total assets

0.86

%

0.90

%

1.03

%

1.18

%

1.21

%

0.86

%

1.21

%

Net charge-offs to average loans (annualized)

0.14

%

0.17

%

0.27

%

0.16

%

0.27

%

0.18

%

0.28

%

 

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest margin and net interest income on a fully tax equivalent basis.  Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

(2) December 31, 2015 regulatory capital ratios are preliminary.

(3)  Includes loans held for sale.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

Three months ended,

Twelve months ended,

Dec. 31,

Dec. 31,

2015

2014

% Change

2015

2014

% Change

Interest income

  Loans, including fees

$

62,502

$

57,087

9.5

%

$

230,246

$

208,836

10.3

%

  Investment securities

     Taxable

10,702

9,905

8.0

%

39,577

40,924

(3.3)

%

     Tax-exempt

1,192

1,060

12.5

%

4,611

3,560

29.5

%

        Total investment securities interest

11,894

10,965

8.5

%

44,188

44,484

(0.7)

%

  Other earning assets

(1,164)

(1,299)

10.4

%

(4,675)

(5,461)

14.4

%

       Total interest income

73,232

66,753

9.7

%

269,759

247,859

8.8

%

Interest expense

  Deposits

5,172

5,013

3.2

%

19,474

16,153

20.6

%

  Short-term borrowings

434

293

48.1

%

1,364

1,268

7.6

%

  Long-term borrowings

1,543

308

401.0

%

2,419

1,813

33.4

%

      Total interest expense

7,149

5,614

27.3

%

23,257

19,234

20.9

%

      Net interest income

66,083

61,139

8.1

%

246,502

228,625

7.8

%

  Provision for loan and lease losses

1,864

2,052

(9.2)

%

9,641

1,528

531.0

%

      Net interest income after provision for

       loan and lease losses

64,219

59,087

8.7

%

236,861

227,097

4.3

%

Noninterest income

  Service charges on deposit accounts

4,755

5,102

(6.8)

%

19,015

20,274

(6.2)

%

  Trust and wealth management fees

3,086

3,376

(8.6)

%

13,128

13,634

(3.7)

%

  Bankcard income

3,077

2,639

16.6

%

11,578

10,740

7.8

%

  Net gains from sales of loans

1,325

1,571

(15.7)

%

6,471

4,364

48.3

%

  Net gain on sale of investment securities

2

20

100.0

%

1,505

70

2,050.0

%

  FDIC loss sharing income

(164)

(43)

(281.4)

%

(2,487)

365

(781.4)

%

  Accelerated discount on covered / formerly covered loans

785

1,759

(55.4)

%

10,791

4,184

157.9

%

  Other

2,953

2,518

17.3

%

15,201

10,334

47.1

%

      Total noninterest income

15,819

16,942

(6.6)

%

75,202

63,965

17.6

%

Noninterest expenses

  Salaries and employee benefits

29,632

28,140

5.3

%

111,792

107,702

3.8

%

  Net occupancy

4,337

4,806

(9.8)

%

18,232

19,187

(5.0)

%

  Furniture and equipment

2,185

2,229

(2.0)

%

8,722

8,554

2.0

%

  Data processing

2,843

2,942

(3.4)

%

10,863

12,963

(16.2)

%

  Marketing

1,052

1,048

0.4

%

3,723

3,603

3.3

%

  Communication

502

551

(8.9)

%

2,161

2,277

(5.1)

%

  Professional services

1,833

1,429

28.3

%

9,622

6,170

55.9

%

  State intangible tax

598

175

241.7

%

2,331

2,111

10.4

%

  FDIC assessments

1,139

1,128

1.0

%

4,446

4,462

(0.4)

%

  Loss (gain) - other real estate owned

772

289

167.1

%

1,861

862

115.9

%

  Loss sharing expense

414

650

(36.3)

%

1,865

4,686

(60.2)

%

  Other

5,977

6,275

(4.7)

%

25,512

23,457

8.8

%

      Total noninterest expenses

51,284

49,662

3.3

%

201,130

196,034

2.6

%

Income before income taxes

28,754

26,367

9.1

%

110,933

95,028

16.7

%

Income tax expense

8,934

7,768

15.0

%

35,870

30,028

19.5

%

      Net income

$

19,820

$

18,599

6.6

%

$

75,063

$

65,000

15.5

%

ADDITIONAL DATA

Net earnings per share - basic

$

0.33

$

0.31

$

1.23

$

1.11

Net earnings per share - diluted

$

0.32

$

0.30

$

1.21

$

1.09

Dividends declared per share

$

0.16

$

0.16

$

0.64

$

0.61

Return on average assets

0.99

%

1.02

%

1.00

%

0.96

%

Return on average shareholders' equity

9.62

%

9.46

%

9.33

%

8.94

%

Interest income

$

73,232

$

66,753

9.7

%

$

269,759

$

247,859

8.8

%

Tax equivalent adjustment

1,046

946

10.6

%

4,017

3,224

24.6

%

   Interest income - tax equivalent

74,278

67,699

9.7

%

273,776

251,083

9.0

%

Interest expense

7,149

5,614

27.3

%

23,257

19,234

20.9

%

   Net interest income - tax equivalent

$

67,129

$

62,085

8.1

%

$

250,519

$

231,849

8.1

%

Net interest margin

3.63

%

3.67

%

3.60

%

3.71

%

Net interest margin (fully tax equivalent) (1)

3.69

%

3.72

%

3.66

%

3.76

%

Full-time equivalent employees

1,400

1,369

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

N/M  = Not meaningful.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2015

Fourth

Third

Second

First

Full

% Change

Quarter

Quarter

Quarter

Quarter

Year

Linked Qtr.

Interest income

  Loans, including fees

$

62,502

$

58,694

$

54,586

$

54,464

$

230,246

6.5

%

  Investment securities

     Taxable

10,702

9,986

9,281

9,608

39,577

7.2

%

     Tax-exempt

1,192

1,163

1,139

1,117

4,611

2.5

%

        Total investment securities interest

11,894

11,149

10,420

10,725

44,188

6.7

%

  Other earning assets

(1,164)

(1,168)

(1,162)

(1,181)

(4,675)

0.3

%

       Total interest income

73,232

68,675

63,844

64,008

269,759

6.6

%

Interest expense

  Deposits

5,172

4,861

4,621

4,820

19,474

6.4

%

  Short-term borrowings

434

374

253

303

1,364

16.0

%

  Long-term borrowings

1,543

281

296

299

2,419

449.1

%

      Total interest expense

7,149

5,516

5,170

5,422

23,257

29.6

%

      Net interest income

66,083

63,159

58,674

58,586

246,502

4.6

%

  Provision for loan and lease losses

1,864

2,647

3,070

2,060

9,641

(29.6)

%

      Net interest income after provision for

        loan and lease losses

64,219

60,512

55,604

56,526

236,861

6.1

%

Noninterest income

  Service charges on deposit accounts

4,755

4,934

4,803

4,523

19,015

(3.6)

%

  Trust and wealth management fees

3,086

3,134

3,274

3,634

13,128

(1.5)

%

  Bankcard income

3,077

2,909

2,972

2,620

11,578

5.8

%

  Net gains from sales of loans

1,325

1,758

1,924

1,464

6,471

(24.6)

%

  Net gain on sale of investment securities

2

409

1,094

0

1,505

100.0

%

  FDIC loss sharing income

(164)

(973)

(304)

(1,046)

(2,487)

(83.1)

%

  Accelerated discount on

    covered / formerly covered loans

785

3,820

4,094

2,092

10,791

(79.5)

%

  Other

2,953

4,364

3,558

4,326

15,201

(32.3)

%

      Total noninterest income

15,819

20,355

21,415

17,613

75,202

(22.3)

%

Noninterest expenses

  Salaries and employee benefits

29,632

27,768

27,451

26,941

111,792

6.7

%

  Net occupancy

4,337

4,510

4,380

5,005

18,232

(3.8)

%

  Furniture and equipment

2,185

2,165

2,219

2,153

8,722

0.9

%

  Data processing

2,843

2,591

2,657

2,772

10,863

9.7

%

  Marketing

1,052

810

973

888

3,723

29.9

%

  Communication

502

531

558

570

2,161

(5.5)

%

  Professional services

1,833

4,092

1,727

1,970

9,622

(55.2)

%

  State intangible tax

598

579

577

577

2,331

3.3

%

  FDIC assessments

1,139

1,103

1,114

1,090

4,446

3.3

%

  Loss (gain) - other real estate owned

772

196

419

474

1,861

293.9

%

  Loss sharing expense

414

574

576

301

1,865

(27.9)

%

  Other

5,977

8,073

6,135

5,327

25,512

(26.0)

%

      Total noninterest expenses

51,284

52,992

48,786

48,068

201,130

(3.2)

%

Income before income taxes

28,754

27,875

28,233

26,071

110,933

3.2

%

Income tax expense

8,934

9,202

9,284

8,450

35,870

(2.9)

%

      Net income

$

19,820

$

18,673

$

18,949

$

17,621

$

75,063

6.1

%

ADDITIONAL DATA

Net earnings per share - basic

$

0.33

$

0.31

$

0.31

$

0.29

$

1.23

Net earnings per share - diluted

$

0.32

$

0.30

$

0.31

$

0.29

$

1.21

Dividends declared per share

$

0.16

$

0.16

$

0.16

$

0.16

$

0.64

Return on average assets

0.99

%

0.97

%

1.05

%

0.99

%

1.00

%

Return on average shareholders' equity

9.62

%

9.12

%

9.49

%

9.06

%

9.33

%

Interest income

$

73,232

$

68,675

$

63,844

$

64,008

$

269,759

6.6

%

Tax equivalent adjustment

1,046

1,000

988

983

4,017

4.6

%

   Interest income - tax equivalent

74,278

69,675

64,832

64,991

273,776

6.6

%

Interest expense

7,149

5,516

5,170

5,422

23,257

29.6

%

   Net interest income - tax equivalent

$

67,129

$

64,159

$

59,662

$

59,569

$

250,519

4.6

%

Net interest margin

3.63

%

3.61

%

3.56

%

3.61

%

3.60

%

Net interest margin (fully tax equivalent) (1)

3.69

%

3.67

%

3.62

%

3.67

%

3.66

%

Full-time equivalent employees

1,400

1,394

1,366

1,353

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate.  Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

N/M = Not meaningful.

 

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED QUARTERLY STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

(Unaudited)

2014

Fourth

Third

Second

First

Full

Quarter

Quarter

Quarter

Quarter

Year

Interest income

  Loans, including fees

$

57,087

$

53,725

$

48,877

$

49,147

$

208,836

  Investment securities

     Taxable

9,905

10,227

10,355

10,437

40,924

     Tax-exempt

1,060

894

796

810

3,560

        Total investment securities interest

10,965

11,121

11,151

11,247

44,484

  Other earning assets

(1,299)

(1,455)

(1,301)

(1,406)

(5,461)

       Total interest income

66,753

63,391

58,727

58,988

247,859

Interest expense

  Deposits

5,013

4,218

3,606

3,316

16,153

  Short-term borrowings

293

354

292

329

1,268

  Long-term borrowings

308

456

525

524

1,813

      Total interest expense

5,614

5,028

4,423

4,169

19,234

      Net interest income

61,139

58,363

54,304

54,819

228,625

  Provision for loan and lease losses

2,052

893

(384)

(1,033)

1,528

      Net interest income after provision for

       loan and lease losses

59,087

57,470

54,688

55,852

227,097

Noninterest income

  Service charges on deposit accounts

5,102

5,263

5,137

4,772

20,274

  Trust and wealth management fees

3,376

3,207

3,305

3,746

13,634

  Bankcard income

2,639

2,859

2,809

2,433

10,740

  Net gains from sales of loans

1,571

1,660

737

396

4,364

  Net gain on sale of investment securities

20

0

0

50

70

  FDIC loss sharing income

(43)

(192)

1,108

(508)

365

  Accelerated discount on

    covered / formerly covered loans

1,759

789

621

1,015

4,184

  Other

2,518

2,925

2,620

2,271

10,334

      Total noninterest income

16,942

16,511

16,337

14,175

63,965

Noninterest expenses

  Salaries and employee benefits

28,140

28,686

25,615

25,261

107,702

  Net occupancy

4,806

4,577

4,505

5,299

19,187

  Furniture and equipment

2,229

2,265

1,983

2,077

8,554

  Data processing

2,942

4,393

2,770

2,858

12,963

  Marketing

1,048

939

830

786

3,603

  Communication

551

541

562

623

2,277

  Professional services

1,429

1,568

1,449

1,724

6,170

  State intangible tax

175

648

644

644

2,111

  FDIC assessments

1,128

1,126

1,074

1,134

4,462

  Loss (gain) - other real estate owned

289

(589)

711

451

862

  Loss sharing expense

650

1,002

1,465

1,569

4,686

  Other

6,275

6,263

5,503

5,416

23,457

      Total noninterest expenses

49,662

51,419

47,111

47,842

196,034

Income before income taxes

26,367

22,562

23,914

22,185

95,028

Income tax expense

7,768

7,218

7,961

7,081

30,028

      Net income

$

18,599

$

15,344

$

15,953

$

15,104

$

65,000

ADDITIONAL DATA

Net earnings per share - basic

$

0.31

$

0.26

$

0.28

$

0.26

$

1.11

Net earnings per share - diluted

$

0.30

$

0.26

$

0.28

$

0.26

$

1.09

Dividends declared per share

$

0.16

$

0.15

$

0.15

$

0.15

$

0.61

Return on average assets

1.02

%

0.88

%

0.99

%

0.96

%

0.96

%

Return on average shareholders' equity

9.46

%

8.16

%

9.19

%

8.95

%

8.94

%

Interest income

$

66,753

$

63,391

$

58,727

$

58,988

$

247,859

Tax equivalent adjustment

946

818

758

702

3,224

   Interest income - tax equivalent

67,699

64,209

59,485

59,690

251,083

Interest expense

5,614

5,028

4,423

4,169

19,234

   Net interest income - tax equivalent

$

62,085

$

59,181

$

55,062

$

55,521

$

231,849

Net interest margin

3.67

%

3.66

%

3.70

%

3.82

%

3.71

%

Net interest margin (fully tax equivalent) (1)

3.72

%

3.71

%

3.76

%

3.87

%

3.76

%

Full-time equivalent employees

1,369

1,395

1,296

1,286

(1) The tax equivalent adjustment to net interest income recognizes the income tax savings when comparing taxable and tax-exempt assets and assumes a 35% tax rate. Management believes that it is a standard practice in the banking industry to present net interest income on a fully tax equivalent basis.  Therefore, management believes, these measures provide useful information to investors by allowing them to make peer comparisons.  Management also uses these measures to make peer comparisons.

 

FIRST FINANCIAL BANCORP.

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

% Change

% Change

2015

2015

2015

2015

2014

Linked Qtr.

Comparable Qtr.

ASSETS

     Cash and due from banks

$

114,841

$

112,298

$

116,318

$

111,011

$

110,122

2.3

%

4.3

%

     Interest-bearing deposits with other banks

33,734

24,191

41,027

25,350

22,630

39.4

%

49.1

%

     Investment securities available-for-sale

1,190,642

1,069,667

955,764

892,169

840,468

11.3

%

41.7

%

     Investment securities held-to-maturity

726,259

756,035

791,839

839,666

867,996

(3.9)

%

(16.3)

%

     Other investments

53,725

53,431

53,585

53,393

52,626

0.6

%

2.1

%

     Loans held for sale

20,957

26,287

21,151

14,937

11,005

(20.3)

%

90.4

%

     Loans

       Commercial

1,663,102

1,637,467

1,315,087

1,298,874

1,315,114

1.6

%

26.5

%

       Real estate - construction

311,712

276,240

229,256

227,969

197,571

12.8

%

57.8

%

       Real estate - commercial

2,258,297

2,169,662

2,171,806

2,120,084

2,140,667

4.1

%

5.5

%

       Real estate - residential

512,311

506,653

506,391

496,852

501,894

1.1

%

2.1

%

       Installment

41,506

39,974

43,073

43,798

47,320

3.8

%

(12.3)

%

       Home equity

466,629

463,629

463,222

456,278

458,627

0.6

%

1.7

%

       Credit card

41,217

39,759

39,216

37,886

38,475

3.7

%

7.1

%

       Lease financing

93,986

82,679

84,723

81,796

77,567

13.7

%

21.2

%

          Total loans

5,388,760

5,216,063

4,852,774

4,763,537

4,777,235

3.3

%

12.8

%

       Less

          Allowance for loan and lease losses

53,398

53,332

52,876

53,076

52,858

0.1

%

1.0

%

                Net loans

5,335,362

5,162,731

4,799,898

4,710,461

4,724,377

3.3

%

12.9

%

     Premises and equipment

136,603

139,020

139,170

140,477

141,381

(1.7)

%

(3.4)

%

     Goodwill and other intangibles

211,865

211,732

145,465

145,586

145,853

0.1

%

45.3

%

     FDIC indemnification asset

17,630

18,931

20,338

20,397

22,666

(6.9)

%

(22.2)

%

     Accrued interest and other assets

305,793

306,210

298,817

292,349

278,697

(0.1)%

9.7

%

       Total Assets

$

8,147,411

$

7,880,533

$

7,383,372

$

7,245,796

$

7,217,821

3.4

%

12.9

%

LIABILITIES

     Deposits

       Interest-bearing demand

$

1,414,291

$

1,330,673

$

1,175,219

$

1,214,882

$

1,225,378

6.3

%

15.4

%

       Savings

1,945,805

1,979,627

1,947,566

1,922,815

1,889,473

(1.7)

%

3.0

%

       Time

1,406,124

1,440,223

1,262,881

1,277,291

1,255,364

(2.4)

%

12.0

%

          Total interest-bearing deposits

4,766,220

4,750,523

4,385,666

4,414,988

4,370,215

0.3

%

9.1

%

       Noninterest-bearing

1,413,404

1,330,905

1,330,149

1,299,602

1,285,527

6.2

%

9.9

%

          Total deposits

6,179,624

6,081,428

5,715,815

5,714,590

5,655,742

1.6

%

9.3

%

     Federal funds purchased and securities sold

         under agreements to repurchase

89,325

62,317

68,349

68,142

103,192

43.3

%

(13.4)

%

     FHLB short-term borrowings

849,100

701,200

641,700

523,500

558,200

21.1

%

52.1

%

          Total short-term borrowings

938,425

763,517

710,049

591,642

661,392

22.9

%

41.9

%

     Long-term debt

119,540

119,515

47,084

47,598

48,241

0.0

%

147.8

%

          Total borrowed funds

1,057,965

883,032

757,133

639,240

709,633

19.8

%

49.1

%

     Accrued interest and other liabilities

100,446

103,061

108,041

96,224

68,369

(2.5)

%

46.9

%

       Total Liabilities

7,338,035

7,067,521

6,580,989

6,450,054

6,433,744

3.8

%

14.1

%

SHAREHOLDERS' EQUITY

     Common stock

571,155

570,025

571,501

570,623

574,643

0.2

%

(0.6)

%

     Retained earnings

388,240

378,258

369,462

360,390

352,893

2.6

%

10.0

%

     Accumulated other comprehensive loss

(30,580)

(17,219)

(20,715)

(17,054)

(21,409)

77.6

%

42.8

%

     Treasury stock, at cost

(119,439)

(118,052)

(117,865)

(118,217)

(122,050)

1.2

%

(2.1)

%

       Total Shareholders' Equity

809,376

813,012

802,383

795,742

784,077

(0.4)

%

3.2

%

       Total Liabilities and Shareholders' Equity

$

8,147,411

$

7,880,533

$

7,383,372

$

7,245,796

$

7,217,821

3.4

%

12.9

%

 

 

FIRST FINANCIAL BANCORP.

AVERAGE CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

Quarterly Averages

Year-to-Date Averages

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

December 31,

2015

2015

2015

2015

2014

2015

2014

ASSETS

     Cash and due from banks

$

119,881

$

114,279

$

114,024

$

112,841

$

124,216

$

115,273

$

123,077

     Federal funds sold

0

0

0

0

0

0

2,217

     Interest-bearing deposits with other banks

18,920

37,468

19,960

21,255

22,617

24,430

14,290

     Investment securities

1,934,173

1,848,083

1,782,785

1,762,622

1,811,941

1,832,430

1,824,107

     Loans held for sale

18,677

15,185

9,292

8,606

11,774

12,974

10,163

     Loans

       Commercial

1,612,485

1,464,508

1,318,408

1,300,869

1,282,752

1,425,032

1,188,882

       Real estate - construction

295,574

259,972

226,314

215,380

192,626

249,559

135,765

       Real estate - commercial

2,180,015

2,164,917

2,117,450

2,129,434

2,158,336

2,148,139

1,891,998

       Real estate - residential

505,208

500,544

497,350

496,451

493,895

499,914

461,547

       Installment

41,148

42,008

43,393

45,376

49,356

42,967

49,721

       Home equity

465,131

462,283

459,414

458,083

456,494

461,250

437,072

       Credit card

41,027

39,991

39,272

38,409

38,966

39,683

38,022

       Lease financing

89,200

83,300

82,578

78,063

74,175

83,316

77,783

          Total loans

5,229,788

5,017,523

4,784,179

4,762,065

4,746,600

4,949,860

4,280,790

       Less

          Allowance for loan and lease losses

53,731

54,398

54,662

53,648

54,656

54,111

56,828

                Net loans

5,176,057

4,963,125

4,729,517

4,708,417

4,691,944

4,895,749

4,223,962

     Premises and equipment

138,689

139,457

140,117

141,153

141,871

139,846

137,506

     Goodwill and other intangibles

211,722

179,333

145,500

145,689

145,872

170,766

118,403

     FDIC indemnification asset

18,437

19,848

20,744

22,112

24,172

20,274

32,436

     Accrued interest and other assets

313,722

294,611

281,947

278,618

267,462

292,327

274,798

       Total Assets

$

7,950,278

$

7,611,389

$

7,243,886

$

7,201,313

$

7,241,869

$

7,504,069

$

6,760,959

LIABILITIES

     Deposits

       Interest-bearing demand

$

1,423,915

$

1,230,621

$

1,220,391

$

1,176,263

$

1,217,852

$

1,263,388

$

1,157,783

       Savings

2,005,100

2,015,373

1,950,127

1,914,723

1,904,568

1,971,699

1,756,682

       Time

1,416,041

1,369,892

1,275,730

1,270,539

1,250,109

1,333,550

1,072,858

          Total interest-bearing deposits

4,845,056

4,615,886

4,446,248

4,361,525

4,372,529

4,568,637

3,987,323

       Noninterest-bearing

1,402,283

1,344,049

1,325,485

1,286,067

1,290,754

1,339,802

1,169,851

          Total deposits

6,247,339

5,959,935

5,771,733

5,647,592

5,663,283

5,908,439

5,157,174

     Federal funds purchased an securities sold

          under agreements to repurchase

79,354

68,505

67,664

77,269

119,712

73,191

119,795

     FHLB short-term borrowings

564,522

606,618

472,295

565,918

564,062

552,483

627,181

          Total short-term borrowings

643,876

675,123

539,959

643,187

683,774

625,674

746,976

     Long-term debt

119,532

71,583

47,266

47,825

49,952

71,748

57,608

       Total borrowed funds

763,408

746,706

587,225

691,012

733,726

697,422

804,584

     Accrued interest and other liabilities

121,775

92,352

84,330

74,198

64,729

93,292

72,186

       Total Liabilities

7,132,522

6,798,993

6,443,288

6,412,802

6,461,738

6,699,153

6,033,944

SHAREHOLDERS' EQUITY

     Common stock

570,510

570,723

571,078

573,932

574,588

571,549

574,576

     Retained earnings

385,295

378,160

365,847

355,848

347,435

371,387

336,557

     Accumulated other comprehensive loss

(18,962)

(19,725)

(18,242)

(20,163)

(18,841)

(19,271)

(23,527)

     Treasury stock, at cost

(119,087)

(116,762)

(118,085)

(121,106)

(123,051)

(118,749)

(160,591)

       Total Shareholders' Equity

817,756

812,396

800,598

788,511

780,131

804,916

727,015

       Total Liabilities and Shareholders' Equity

$

7,950,278

$

7,611,389

$

7,243,886

$

7,201,313

$

7,241,869

$

7,504,069

$

6,760,959

 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS (1)

(Dollars in thousands)

(Unaudited)

 Quarterly Averages

Year-to-Date Averages

December 31, 2015

September 30, 2015

December 31, 2014

December 31, 2015

December 31, 2014

Balance

Yield

Balance

Yield

Balance

Yield

Balance

Yield

Balance

Yield

Earning assets

    Investments:

      Investment securities

$

1,934,173

2.44

%

$

1,848,083

2.39

%

$

1,811,941

2.40

%

$

1,832,430

2.41

%

$

1,824,107

2.44

%

      Interest-bearing deposits with other banks

18,920

0.29

%

37,468

0.25

%

22,617

0.30

%

24,430

0.27

%

16,507

0.42

%

    Gross loans (2)

5,266,902

4.62

%

5,052,556

4.52

%

4,782,546

4.63

%

4,983,108

4.53

%

4,323,389

4.70

%

       Total earning assets

7,219,995

4.02

%

6,938,107

3.93

%

6,617,104

4.00

%

6,839,968

3.94

%

6,164,003

4.02

%

Nonearning assets

    Allowance for loan and lease losses

(53,731)

(54,398)

(54,656)

(54,111)

(56,828)

    Cash and due from banks

119,881

114,279

124,216

115,273

123,077

    Accrued interest and other assets

664,133

613,401

555,205

602,939

530,707

       Total assets

$

7,950,278

$

7,611,389

$

7,241,869

$

7,504,069

$

6,760,959

Interest-bearing liabilities

    Deposits:

      Interest-bearing demand

$

1,423,915

0.13

%

$

1,230,621

0.09

%

$

1,217,852

0.10

%

$

1,263,388

0.10

%

$

1,157,783

0.11

%

      Savings

2,005,100

0.20

%

2,015,373

0.19

%

1,904,568

0.31

%

1,971,699

0.21

%

1,756,682

0.25

%

      Time

1,416,041

1.03

%

1,369,892

1.05

%

1,250,109

1.02

%

1,333,550

1.06

%

1,072,858

0.98

%

    Total interest-bearing deposits

4,845,056

0.42

%

4,615,886

0.42

%

4,372,529

0.45

%

4,568,637

0.43

%

3,987,323

0.41

%

    Borrowed funds

      Short-term borrowings

643,876

0.27

%

675,123

0.22

%

683,774

0.17

%

625,674

0.22

%

746,976

0.17

%

      Long-term debt

119,532

5.12

%

71,583

1.56

%

49,952

2.45

%

71,748

3.37

%

57,608

3.15

%

        Total borrowed funds

763,408

1.03

%

746,706

0.35

%

733,726

0.32

%

697,422

0.54

%

804,584

0.38

%

       Total interest-bearing liabilities

5,608,464

0.51

%

5,362,592

0.41

%

5,106,255

0.44

%

5,266,059

0.44

%

4,791,907

0.40

%

Noninterest-bearing liabilities

    Noninterest-bearing demand deposits

1,402,283

1,344,049

1,290,754

1,339,802

1,169,851

    Other liabilities

121,775

92,352

64,729

93,292

72,186

    Shareholders' equity

817,756

812,396

780,131

804,916

727,015

       Total liabilities & shareholders' equity

$

7,950,278

$

7,611,389

$

7,241,869

$

7,504,069

$

6,760,959

Net interest income (1)

$

66,083

$

63,159

$

61,139

$

246,502

$

228,625

Net interest spread (1)

3.51

%

3.52

%

3.56

%

3.50

%

3.62

%

Net interest margin (1)

3.63

%

3.61

%

3.67

%

3.60

%

3.71

%

(1) Not tax equivalent.

(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

 

 

FIRST FINANCIAL BANCORP.

NET INTEREST MARGIN RATE/VOLUME ANALYSIS  (1)

(Dollars in thousands)

(Unaudited)

 Linked Qtr. Income Variance

 Comparable Qtr. Income Variance

Year-to-Date Income Variance

Rate

Volume

Total

Rate

Volume

Total

Rate

Volume

Total

Earning assets

    Investment securities

$

216

$

529

$

745

$

177

$

752

$

929

$

(497)

$

201

$

(296)

    Interest-bearing deposits with other banks

4

(14)

(10)

0

(3)

(3)

(26)

21

(5)

    Gross loans (2)

1,326

2,496

3,822

(86)

5,639

5,553

(7,654)

29,855

22,201

       Total earning assets

1,546

3,011

4,557

91

6,388

6,479

(8,177)

30,077

21,900

Interest-bearing liabilities

    Total interest-bearing deposits

$

66

$

245

$

311

$

(345)

$

504

$

159

$

843

$

2,478

$

3,321

    Borrowed funds

    Short-term borrowings

81

(21)

60

168

(27)

141

360

(264)

96

    Long-term debt

643

619

1,262

337

898

1,235

129

477

606

       Total borrowed funds

724

598

1,322

505

871

1,376

489

213

702

       Total interest-bearing liabilities

790

843

1,633

160

1,375

1,535

1,332

2,691

4,023

          Net interest income (1)

$

756

$

2,168

$

2,924

$

(69)

$

5,013

$

4,944

$

(9,509)

$

27,386

$

17,877

(1) Not tax equivalent.

(2) Loans held for sale, nonaccrual loans, covered loans, and indemnification asset are included in gross loans.

 

 

FIRST FINANCIAL BANCORP.

CREDIT QUALITY

(Dollars in thousands)

(Unaudited)

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Full Year

Full Year

2015

2015

2015

2015

2014

2015

2014

ALLOWANCE FOR LOAN AND LEASE LOSS ACTIVITY

Balance at beginning of period

$

53,332

$

52,876

$

53,076

$

52,858

$

53,989

$

52,858

$

62,730

  Provision for loan and lease losses

1,864

2,647

3,070

2,060

2,052

9,641

1,528

  Gross charge-offs

    Commercial

622

536

510

1,481

130

3,149

1,440

    Real estate - construction

0

85

0

0

0

85

0

    Real estate - commercial

1,137

941

2,515

208

385

4,801

2,329

    Real estate - residential

31

101

250

314

221

696

922

    Installment

128

124

12

131

78

395

283

    Home equity

300

322

163

700

349

1,485

1,745

    Other

242

276

237

294

287

1,049

1,158

    Covered / formerly covered loans

3,818

1,577

1,585

1,916

4,318

8,896

18,096

      Total gross charge-offs

6,278

3,962

5,272

5,044

5,768

20,556

25,973

  Recoveries

    Commercial

386

357

185

44

75

972

1,260

    Real estate - construction

91

0

10

29

0

130

0

    Real estate - commercial

597

444

179

354

423

1,574

1,194

    Real estate - residential

192

87

23

64

29

366

190

    Installment

36

59

44

60

45

199

218

    Home equity

102

195

129

154

45

580

231

    Other

74

52

71

45

111

242

406

    Covered / formerly covered loans

3,002

577

1,361

2,452

1,857

7,392

11,074

      Total recoveries

4,480

1,771

2,002

3,202

2,585

11,455

14,573

  Total net charge-offs

1,798

2,191

3,270

1,842

3,183

9,101

11,400

Ending allowance for loan and lease losses

$

53,398

$

53,332

$

52,876

$

53,076

$

52,858

$

53,398

$

52,858

NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES (ANNUALIZED)

  Commercial

0.06

%

0.05

%

0.10

%

0.45

%

0.02

%

0.15

%

0.02

%

  Real estate - construction

(0.12)

%

0.13

%

(0.02)

%

(0.05)

%

0.00

%

(0.02)

%

0.00

%

  Real estate - commercial

0.10

%

0.10

%

0.48

%

(0.03)

%

(0.01)

%

0.16

%

0.07

%

  Real estate - residential

(0.14)

%

0.01

%

0.21

%

0.24

%

0.18

%

0.08

%

0.19

%

  Installment

0.94

%

0.65

%

(0.32)

%

0.68

%

0.28

%

0.49

%

0.14

%

  Home equity

0.18

%

0.12

%

0.03

%

0.53

%

0.29

%

0.21

%

0.39

%

  Other

0.52

%

0.74

%

0.55

%

0.88

%

0.63

%

0.67

%

0.66

%

  Covered / formerly covered loans

1.40

%

1.60

%

0.33

%

(0.74)

%

3.06

%

0.58

%

1.88

%

     Total net charge-offs

0.14

%

0.17

%

0.27

%

0.16

%

0.27

%

0.18

%

0.28

%

COMPONENTS OF NONPERFORMING LOANS, NONPERFORMING ASSETS, AND UNDERPERFORMING ASSETS

  Nonaccrual loans (1)

    Commercial

$

8,231

$

7,191

$

6,683

$

6,926

$

5,817

$

8,231

$

5,817

    Real estate - construction

0

79

223

223

223

0

223

    Real estate - commercial

9,059

17,228

21,186

29,925

27,752

9,059

27,752

    Real estate - residential

5,027

4,940

5,257

6,100

7,241

5,027

7,241

    Installment

127

321

305

278

443

127

443

    Home equity

2,787

2,702

2,735

2,462

3,064

2,787

3,064

    Lease financing

122

0

0

0

0

122

0

   Covered / formerly covered loans

2,644

3,252

3,284

3,239

3,929

2,644

3,929

      Nonaccrual loans

27,997

35,713

39,673

49,153

48,469

27,997

48,469

  Accruing troubled debt restructurings (TDRs)

28,876

20,226

20,084

15,429

15,928

28,876

15,928

     Total nonperforming loans

56,873

55,939

59,757

64,582

64,397

56,873

64,397

  Other real estate owned (OREO)

13,254

15,187

16,401

20,906

22,674

13,254

22,674

     Total nonperforming assets

70,127

71,126

76,158

85,488

87,071

70,127

87,071

  Accruing loans past due 90 days or more

108

58

70

85

216

108

216

     Total underperforming assets

$

70,235

$

71,184

$

76,228

$

85,573

$

87,287

$

70,235

$

87,287

  Classified assets

$

106,468

$

95,597

$

106,280

$

109,090

$

109,122

$

106,468

$

109,122

  Covered / formerly covered classified assets

25,963

33,110

33,651

44,727

45,682

25,963

45,682

Total classified assets

$

132,431

$

128,707

$

139,931

$

153,817

$

154,804

$

132,431

$

154,804

CREDIT QUALITY RATIOS

Allowance for loan and lease losses to

     Nonaccrual loans

190.73

%

149.33

%

133.28

%

107.98

%

109.06

%

190.73

%

109.06

%

     Nonperforming loans

93.89

%

95.34

%

88.49

%

82.18

%

82.08

%

93.89

%

82.08

%

     Total ending loans

0.99

%

1.02

%

1.09

%

1.11

%

1.11

%

0.99

%

1.11

%

Allowance and loan marks, net of indemnification asset, to total loans

1.11

%

1.17

%

1.27

%

1.43

%

1.51

%

1.11

%

1.51

%

Nonperforming loans to total loans

1.06

%

1.07

%

1.23

%

1.36

%

1.35

%

1.06

%

1.35

%

Nonperforming assets to

     Ending loans, plus OREO

1.30

%

1.36

%

1.56

%

1.79

%

1.81

%

1.30

%

1.81

%

     Total assets

0.86

%

0.90

%

1.03

%

1.18

%

1.21

%

0.86

%

1.21

%

Nonperforming assets, excluding accruing TDRs to

     Ending loans, plus OREO

0.76

%

0.97

%

1.15

%

1.46

%

1.48

%

0.76

%

1.48

%

     Total assets

0.51

%

0.65

%

0.76

%

0.97

%

0.99

%

0.51

%

0.99

%

(1)  Nonaccrual loans include nonaccrual TDRs of $9.3 million, $13.6 million, $14.1 million, $20.3 million, and $12.3 million, as of December 31, 2015, September 30, 2015, June 30. 2015, March 31, 2015, and December 31, 2014, respectively.

 

 

FIRST FINANCIAL BANCORP.

CAPITAL ADEQUACY

(Dollars in thousands, except per share data)

(Unaudited)

Twelve months ended,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Dec. 31,

Dec. 31,

2015

2015

2015

2015

2014

2015

2014

PER COMMON SHARE

Market Price

  High

$

20.72

$

19.69

$

18.55

$

18.30

$

19.00

$

20.72

$

19.00

  Low

$

17.83

$

17.55

$

16.68

$

16.52

$

15.34

$

16.52

$

15.34

  Close

$

18.07

$

19.08

$

17.94

$

17.81

$

18.59

$

18.07

$

18.59

Average shares outstanding - basic

60,985,096

61,135,749

61,115,802

61,013,489

60,905,095

61,062,657

58,662,836

Average shares outstanding - diluted

61,861,182

61,987,795

61,915,294

61,731,844

61,627,518

61,847,547

59,392,667

Ending shares outstanding

61,641,680

61,713,633

61,707,847

61,686,887

61,456,547

61,641,680

61,456,547

Total shareholders' equity

$

809,376

$

813,012

$

802,383

$

795,742

$

784,077

$

809,376

$

784,077

REGULATORY CAPITAL (1)

Preliminary

Preliminary

Common equity tier 1 capital

$

648,748

$

638,574

$

697,139

$

686,191

$

673,851

$

648,748

$

673,851

Common equity tier 1 capital ratio

10.28

%

10.51

%

12.34

%

12.29

%

12.69

%

10.28

%

12.69

%

Tier 1 capital

$

648,852

$

638,678

$

697,243

$

686,295

$

673,955

$

648,852

$

673,955

Tier 1 ratio

10.29

%

10.52

%

12.35

%

12.29

%

12.69

%

10.29

%

12.69

%

Total capital

$

822,431

$

812,029

$

751,818

$

740,967

$

728,284

$

822,431

$

728,284

Total capital ratio

13.04

%

13.37

%

13.31

%

13.27

%

13.71

%

13.04

%

13.71

%

Total capital in excess of minimum

  requirement

$

317,780

$

326,117

$

300,006

$

294,290

$

303,358

$

317,780

$

303,358

Total risk-weighted assets

$

6,308,139

$

6,073,899

$

5,647,658

$

5,583,461

$

5,311,573

$

6,308,139

$

5,311,573

Leverage ratio

8.33

%

8.58

%

9.77

%

9.67

%

9.44

%

8.33

%

9.44

%

OTHER CAPITAL RATIOS

Ending shareholders' equity to ending assets

9.93

%

10.32

%

10.87

%

10.98

%

10.86

%

9.93

%

10.86

%

Ending tangible shareholders' equity to ending tangible assets

7.53

%

7.84

%

9.08

%

9.16

%

9.02

%

7.53

%

9.02

%

Average shareholders' equity to average assets

10.29

%

10.67

%

11.05

%

10.95

%

10.77

%

10.73

%

10.75

%

Average tangible shareholders' equity to average tangible assets

7.83

%

8.12

%

9.23

%

9.11

%

8.94

%

8.13

%

8.79

%

REPURCHASE PROGRAM (2)

Shares repurchased

91,032

148,935

0

0

0

239,967

40,255

Average share repurchase price

$

18.85

$

18.68

N/A

N/A

N/A

$

18.75

$

17.32

Total cost of shares repurchased

$

1,716

$

2,783

N/A

N/A

N/A

$

4,499

$

697

(1) 2015 amounts and ratios are calculated under the Basel III standardized approach

(2) Represents share repurchases as part of publicly announced plans.

N/A = Not applicable

 

 

SOURCE First Financial Bancorp



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